Binance Introduces NFT Loan Feature

May 31, 2023

If you’ve been monitoring the market lately, most of the earliest blue-chip NFT projects are currently in a downtrend.

Prominent projects like BAYC, Azuki, Moonbirds, and Doodles, all prices are discounted compared to their value before. 

And with this condition, Binance didn’t waste time taking this as an opportunity to bring more people into the market. 

So, without further delay, let’s check its newest feature out! 

THE ALPHA

Binance NFT marketplace recently launched an NFT loan feature that allows users to borrow Ethereum from lenders.

In exchange, the lendee will hand over their blue-chip NFT as collateral if they can’t repay the borrowed ETH. 

And by blue-chip NFTs, I meant NFTs that are only part of these projects below, namely: 

  • Bored Ape Yacht Club (BAYC)

  • Mutant Ape Yacht Club (MAYC)

  • Azuki

  • Doodles

Aside from its limited collateral options, Binance NFT loan also supports ETH loans only as of now. 

But there’s no need to fret because these limitations will only be temporary, as Binance plans to include more collections and borrowable assets in the future.

MORE DETAILS 

This marks another progressive step for the NFT community since more degens will get to participate in the market, especially new ones. 

With Binance’s newest loan development, users will also get to enjoy other valuable benefits, including:

  • Instant liquidity

  • Zero gas fees

  • Liquidation protection 

  • Competitive interest rates 

And in case you’re wondering about their interest rates, the platform is keeping the annual interest rate at 3.36%.

This serves as the discounted price during the promo period and will end soon until further notice.

Once the promo period ends, the interest rate will revert to its standard borrowing interest rate per Annum – 11.2%. 

WEB3 DEGEN SENTIMENTS 

After Blur’s release of its NFT lending protocol, Blend, Binance NFT also joins in to compete with its own loan feature as well. 

And with the latter’s approach into the NFT market, many degens immediately got bullish as more opportunities will come.

CONCLUSION

Binance’s newly launched innovative feature shows a progressive vision for the fun and business side of Web3. 

With this expansion, many old and emerging investors will likely take part in the system as well, given that it will benefit lenders and lendees alike. 

So to end, what do you think about this update? 

Editors’ Note: The Mega Maxi’s articles and its external content are not financial advice. Always DYOR.